This month marks a true milestone for the UK benefits system: the end of the thirteen-year rollout of Universal Credit that has brought together all means-tested working-age benefits.
This moment is an opportunity to consider how the system can be improved
WITH welfare and benefits in danger of becoming a political football in the Holyrood election campaign (see today’s FMQs for starters – Ed.), Scotland’s Poverty Alliance has spoken out:
Poverty Alliance Policy & Campaigns Manager Gary Christie said: “When it comes to ending the injustice of poverty and investing in a better future, the Poverty Alliance works constructively with leaders from all political parties.
“One of the things we ask of all is that they avoid creating false division between people. Very few politicians would criticise someone for using our NHS or claiming Pension Credit. So, it’s morally wrong to point at others who use our shared social security system.
“Nearly 40% of the people on Universal Credit are in work. Nearly 1 in 3 people referred to Trussell Trust foodbanks are in working households.
“We all pay into our shared public services, and we all benefit. People who don’t pay income tax contribute every time they buy something that has VAT on it. And many people on the lowest incomes in Scotland have higher tax rates than the wealthiest in society. We are all in it together.
“Instead of risking stigmatising and hurting our friends, neighbours and fellow citizens, it would be good for politicians to look at their own responsibilities first. They have the power to move towards a Minimum Income Guarantee based on fair work, strong services, and a just social security system for all of us. These must be pursued together, not traded off against one another to score political points.
“The Scottish Child Payment is a vital building block of that future. It helps give a decent start in life to more than 300,000 of Scotland’s children.
“Rather than talking about unjustly cutting some children off from that vital help, politicians can boost the value of the payment as one important stepping stone towards the Minimum Income Guarantee.”
Almost one million young people will benefit from learning or employment opportunities as a result of a major £820 million funding package.
Thanks to the funding, 350,000 new training or workplace opportunities in sectors including construction, health and social care and hospitality will be provided to young people on Universal Credit to help them develop on the job skills, employer networks, and CV and interview coaching – breaking down barriers to employment and ensuring every young person has the chance to reach their potential.
In total, 900,000 young people on Universal Credit and looking for work will also benefit from a dedicated work support session, followed by four additional weeks of intensive support.
They will be referred to one of up to six pathways by their work coach: work, work experience, apprenticeship, wider training, learning or a workplace training programme with a guaranteed interview, designed in partnership with employers.
The investment will provide a springboard to a better future for close to a million young people, giving them the chance to gain crucial skills and support to find a job with long term prospects.
As part of this training, young people will receive six weeks of training, work experience, and a guaranteed job interview, giving young people their first foot in the door towards meaningful employment, boosting their prospects and supporting a stronger economy as part of our Plan for Change.
55,000 young people also stand to gain from a government-backed guaranteed job, which will begin roll-out from Spring 2026 in areas with some of the highest need in Great Britain. These regions are:
More than 1,000 young people are expected to start a job in the first six months alone, with local partners and employers to play a key role in supporting young people as they transition into meaningful employment with fully funded wages and wraparound support for young people.
Alongside this, Youth Hubs – centres where young people can receive vital help to get them back on track – will be expanded to every local area of Great Britain, bringing the total to over 360. This will ensure young people up and down the country can access the lifechanging support Youth Hubs offer, such as CV advice, skills training, mental health support, housing advice, and careers guidance.
There is an expectation that young people will take up the opportunities they are offered, and sanctions to benefits could be applied for those who don’t engage with the offered support without good reason.
Work and Pensions Secretary Pat McFadden, said: “Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them.
“That’s why we are introducing a range of reforms to help young people take that vital step into the workplace or training and to go on and make something of their lives.
“This funding is a downpayment on young people’s futures and the future of the country, creating real pathways into good jobs and providing work experience, skills training and guaranteed employment.”
Education Secretary Bridget Phillipson said: “Too many young people fall out of education unnoticed, crippling their life changes and denting the economy.
“Smarter data and early-warning tools will change that – helping us to spot risks sooner, step in faster, and keep learners on track through our Plan for Change.
“With these ambitious measures, we can break down barriers to opportunity to make sure every young person gets the support they deserve.”
Recent data shows that almost one million young people are not in education, employment, or training (NEET), a 26% increase from pre-pandemic levels. Today’s announcement represents a major intervention to reverse this trend and ensure no young person is left behind.
It builds on a wide range of measures the Government is bringing forward to support young people, including expanded funding for youth trailblazers, and a major investigation spearheaded by Alan Milburn into the barriers preventing the young from accessing work.
Earlier intervention is being prioritised, with a £34 million investment to make it easier to identify young people who need support before they drop out of the system. This includes a new Risk of NEET indicator tool, giving local areas more accurate insights to target support where it’s needed most.
The Government will also invest in further education attendance monitoring and provide targeted support for young people in state-funded alternative provision schools, helping them secure valuable work experience.
To ensure young people transition effectively from school into post-16 education or training, we are working with schools and piloting automatic enrolment with further education providers for young people without a place.
As announced by the Chancellor, the Government has committed to delivering a Jobs Guarantee for 18 to 21-year-olds who have been searching for work whilst in receipt of Universal Credit for 18 months.
The initiative will provide 25 hours/week of fully subsidised six-month paid work to every eligible 18- to 21-year-old who has been on Universal Credit and looking for work for 18 months. The young people will be paid at the relevant minimum wage and also receive fully funded wrap around support.
The Government is finalising its National Youth Strategy, shaped by insights from over 14,000 young people, that will set out a long-term vision for youth policy across government.
Laura-Jane Rawlings MBE, CEO & Founder, Youth Employment UK: “The Youth Guarantee is a hugely important step forward and reflects many of the recommendations we have championed through our work.
“More than 8,000 young people took part in our 2025 Youth Voice Census, and the message was clear: they value work experience, skills development and local support, but too often cannot access it.
“This package – from the Youth Guarantee Gateway and expanded Youth Hubs to additional work experience, SWAPs and apprenticeships – represents the most focused investment in tackling youth unemployment we have seen in many years.
“We particularly welcome the commitment to early support, personalised pathways and strong local partnerships. We look forward to working closely with the government, Mayors, local areas and employers to ensure delivery reaches every young person, especially those facing the highest barriers. Together, we can make this Guarantee a meaningful reality for all.”
Barry Fletcher, CEO at Youth Futures Foundation said: “Youth Futures Foundation welcomes the Government’s focus and investment in tackling the growing, stubborn challenge of youth unemployment and inactivity.
“Today’s measures present an ambitious, comprehensive package to reform the system and support more young people into earning or learning.
“Crucially, reforms like the Jobs Guarantee are grounded in the evidence of what works, especially for marginalised young people. This will be vital to ensure a better future for young people and drive long-term economic prosperity.”
Naomi Clayton, CEO, Institute for Employment Studies, said: “With one in eight young people out of work and not in education and training, and the lasting scarring effects that can have, we’re pleased to see the government’s reforms to support more young people.
“We welcome the dedicated support being introduced through the Youth Guarantee Gateway to help prevent young people becoming long-term unemployed, alongside broader preventative measures to make it easier to identify young people who need support. We also welcome the wraparound support that will be provided to long-term unemployed young people as part of the Jobs Guarantee.
“Supporting young people to access meaningful work experience, training opportunities and good jobs will help secure a brighter future for a generation, their communities and the economy.”
Richard Rigby, Head of UK Government Affairs at The King’s Trust said: “At The King’s Trust, we know that when you match young people’s potential with opportunity, they can transform their own lives. This Youth Guarantee is a crucial step towards unlocking that potential.
“Increasing training and work experience opportunities, alongside a guaranteed job scheme for the long-term unemployed, will help the young people we support in our centres each day to start overcoming the barriers they face, and take their first steps into work.
“If we get this right, we can transform the futures of young people out of work across the UK, and build a healthier, wealthier society.”
Neil Morrison, HR Director at Severn Trent said: “Giving a young person that first opportunity can be game changing, so we’re fully supportive of government’s Youth Guarantee.
“At Severn Trent we’re tackling youth unemployment head on, and we’re giving young people real chances to grow and creating opportunities that unlock potential and true talent. We look forward to working together on this, and the role business can play in giving the next generation the very best start.”
Susannah Hardyman, CEO of Impetus, said: “We are delighted that the Government has chosen to invest in the futures of young people.
“With hundreds of thousands of young people neither earning nor learning, and young people from disadvantaged backgrounds twice as likely to be NEET as their better off peers, this Youth Guarantee is much-needed to ensure everyone aged 16-24 gets the support they need to succeed, whether that’s a work placement, work experience or training.
“Expanding Youth Hubs across the country is a particularly encouraging move, especially as they are a place where young people can access support even if they are not currently claiming Universal Credit.
“As our Blueprint for a Youth Hub research found, a culture of hospitality enables Youth Hubs to be an easy front door for young people to start accessing the opportunities they need for a fulfilling life.”
Rain Newton-Smith, CBI Chief Executive, said: “There is a moral and economic imperative for government and businesses to work together to support more young people into training and work.
“These announcements will allow more young people to gain the vital experience that only work can provide.”
Dr Emily Andrews, Director of Policy and Research at the Learning and Work Institute, said: “With nearly one million young people neither earning nor learning, we welcome today’s announcements to tackle the current waste of potential and boost our future workforce.
“Building on our long-standing call for a Youth Guarantee, we are pleased to see a more comprehensive offer developing, with a range of new opportunities for young people to access experience and training in the workplace.
“Crucially, the national system-level offer is being balanced by more place-based approaches, including Trailblazers and the continued expansion of youth hubs to reach young people outside the benefits system.
“We will continue to work with partners on the delivery and implementation of this package at a national, regional and local level, to make the most of these opportunities.”
Debbie Cook, EFL’s Director of Community said: “From employment, mentoring and education programmes to sport and wellbeing initiatives, EFL Football Clubs and their charities are deeply embedded in their communities, empowering young people to unlock their potential and thrive.
“Through the Youth Guarantee, we look forward to maximising opportunities for young people via new employment hubs in EFL communities, ensuring they can access guaranteed pathways into work, training, and skills development.”
Patrick Milnes, Head of People and Work Policy, at the British Chambers of Commerce, said: “The number of young people who are not in education, employment or training is at its highest level for a decade.
“BCC research also shows that 75% of businesses are struggling to recruit skilled workers, so it is good to see the government taking action with an ambitious plan to get young people into work.
“Expanding Youth Hubs and investing in the Jobs Guarantee will help young people gain the skills and experience needed to succeed in the workplace. Our network of 51 Chambers of Commerce across the UK stands ready to help government deliver the Youth Guarantee in full.
“Ensuing young people can access fulfilling careers and businesses can find the talent they need are vital to unlocking growth.”
Tracey Collins, Director of Emerging Talent and Social Impact at Kier, said: “At Kier, we are committed to providing opportunities for young people and bring emerging talent into construction through hundreds of work experience and apprenticeship positions every year.
“It’s important that these opportunities are open to everyone, regardless of background or history, as every young person deserves the chance to flourish.
“To support this, we are delivering a number of initiatives to make Kier accessible to underrepresented groups including a pilot project with the Youth Futures Foundation as well as through our Kierriculum schools’ engagement programme.
“We believe that the Youth Guarantee will further strengthen this activity and we are proud to support the government’s work to collectively reduce long-term youth unemployment and help them reach a better future.”
FRASER OF ALLANDER BUDGET PREVIEW
One of the key decisions that UK Ministers will be making ahead of Rachel Reeves announcing the Budget later this month is what to do about the two-child limit (write Fraser of Allander Institute’s SPENCER THOMPSON and HANNAH RANDOLPH).
This policy, which limits Universal Credit to the first two children in a family, has been widely criticised for driving up child poverty rates. And given that the UK Government has pledged to reduce child poverty, with the publication of its child poverty strategy expected sometime around the Budget, the pressure is on to abolish the policy.
The Scottish Government has committed to mitigate the two-child limit by introducing a new benefit, the Two-Child Limit Payment (TCLP). If the two-child limit is abolished, this payment would no longer be needed, freeing up resource for the Scottish Government. The First Minister has pledged that the savings would be spent on additional measures to tackle child poverty, which he has stated is the Scottish Government’s top priority.
How much would the Scottish Government save?
The Scottish Fiscal Commission has forecast the TCLP will cost £155m in 2026-27. This represents the amount that the Scottish Government will directly save if the two-child limit is abolished.
There would however be some offsetting costs to the Scottish Government, coming through two main channels. First, removing the two-child limit would push more families onto the Benefit Cap – unless this was also abolished – which the Scottish Government mitigates through Discretionary Housing Payments.
And second, it would bring more families onto Universal Credit, namely those whose incomes are just too high to be entitled with the two-child limit in place.
These families would in turn become eligible for devolved benefits that are linked to receipt of Universal Credit, including the Scottish Child Payment, raising spend on these benefits.
We estimate that these spillovers would amount to around £34m in 2026-27.
Whether this cost is met from within the £155m pot or counted separately is a political question. The fiscal context, which will become even more challenging if the UK Government chooses to raise income tax in the rest of the UK, may encourage the former choice. But this would likely be seen by campaigners as penny pinching at a time when urgent, ambitious action is needed to tackle child poverty.
Even with the two-child limit abolished, we would still be a long way off meeting the statutory child poverty targets in 2030 – and these are approaching quickly, with the final Delivery Plan due in March.
How could the savings be spent?
If the spillover costs from the abolition of the two-child limit (£34m) were funded from within the TCLP budget (£155m), that would leave £121m to be spent on other policies. We have modelled the child poverty impacts of five illustrative policy options, all of which we estimate will cost about this much in 2026-27 assuming no changes in behaviour or administrative costs. Clearly, a £155m policy could go further than a £121m one, so this represents a conservative scenario.
Impacts of policy options on relative child poverty after housing costs, 2026-27
| Option | Raising the Scottish Child Payment to… | …and… | … would reduce child poverty by about… |
| 1 | £35 | – | 1ppt |
| 2 | £31 | extending Scottish Child Payment from children under 16 to include dependents aged 16-19 | 1ppt |
| 3 | £34 | increasing Best Start Grants and Best Start Foods by the same proportion | 1ppt |
| 4 | £30 | extending universal Free School Meals from P1-P5 to include P6-P7 | – |
| 5 | £34 | increasing the maximum discount on water and sewerage charges from 35% to 100% for families with children | 1ppt |
Source: FAI modelling using UKMOD.
Notes: Dash indicates that impact is too small to report. Scottish Child Payment is currently projected to be about £28 per child per week in 2026/27. Free School Meals count as income for purposes of measuring poverty. Technical details of modelling available on request.
The impacts of these policies would be over and above the impacts of the two-child limit being abolished, which we estimate to be around 1 percentage point in 2026-27. All else equal, each of the options would reduce relative child poverty after housing costs by a further 1 percentage point in 2026-27, representing an additional 10,000 children who would be kept out of poverty.
The exception is Option 4: extending universal Free School Meals to all primary school students would not have a measurable impact on aggregate child poverty levels, even when coupled with an increase to Scottish Child Payment of around £2 per child per week.
Although most of the policies are similar in terms of their aggregate impacts, under the surface there are some important differences:
These are by no means the only options available, but they highlight some of the factors that the Scottish Government will need to weigh up when reallocating the TCLP budget, along with the potential impacts of doing so, in a scenario where the two-child limit is abolished.
Time will tell
Whether or not that that scenario will transpire remains unclear. It is possible that the UK Government will take an intermediate approach by relaxing the two-child limit in some way without abolishing it entirely – for example by exempting certain groups, moving to a three-child limit, or introducing a taper.
Mitigating the remainder of the limit would cost less than the planned TCLP – meaning there would still be some savings – but may require more time to be designed and implemented. It is also possible that the Budget will include a commitment to eventually abolish the two-child limit, but not in the coming year, meaning the TCLP would be needed temporarily.
For now, all eyes are on Rachel Reeves – but the focus will quickly turn to the Scottish Government. Keep an eye on our website and social media for more analysis of the UK and Scottish Budgets over the next few months!
A new report from the Work and Pensions Committee has raised concerns that planned cuts to the health component of Universal Credit (UC health) will push disabled people into poverty despite the above inflation rise in the UC standard allowance.
In its Pathways to Work report, the Committee repeated calls to delay planned cuts in UC health reform until the full impact of the changes are better understood.
The Committee wrote to the Secretary of State in May calling for a pause of the planned reforms to UC health and Personal Independence Payments (PIP) and called for PIP policy to be co-produced with disabled people.
The Government subsequently dropped all the PIP proposals and agreed to co-produce a new PIP assessment process with disabled people and their organisations in a review led by Sir Stephen Timms.
However, under the planned reforms to UC health, from April 2026 although all existing claimants and new claimants with severe or terminal conditions will be protected, other claimants assessed as having limited capability for work and work-related activity will see their awards halved from £423.27 to £217.26.
This is part of the Government’s drive to get more people off welfare and into work, as described in their Pathways to Work Green Paper.
Although the intent to safeguard these people was welcomed, MPs on the Committee raised concerns that some conditions, particularly serious mental health conditions, might not be included under the severe condition criteria; this also applies to people with fluctuating conditions.
The Committee also asked the Secretary of State why an assessment of safeguarding risks had not been conducted before the Green Paper was published.
Committee Chair Debbie Abrahams said: “We welcome the concessions that the Government made to the UC and PIP Bill (now the UC Bill); but there are still issues with these welfare reforms not least with the cut in financial support that newly sick and disabled people will receive.
“The Government’s own analysis published in March indicates that from next April approximately 50,000 people who develop a health condition or become disabled – and those who live with them – will enter poverty by 2030 as a result of the reduction in support of the UC health premium.
“We recommend delaying the cuts to the UC-health premium, especially given that other policies that such as additional NHS capacity, or employment support, or changes in the labour market to support people to stay in work, have yet to materialise.
“We agree in a reformed and sustainable welfare system, but we must ensure that the wellbeing of those who come into contact with it is protected.
“The lesson learned from last month should be that the impact of policy changes to health-related benefits must be assessed prior to policy changes being implemented to avoid potential risks to claimants.”
DISABLED PEOPLE WILL LOSE OUT ON THOUSANDS OF POUNDS
The Labour government claims nearly 4 million households will see an annual income boost estimated to be worth £725 cash as the controversial Bill to overhaul the welfare system completed the next stage of its passage through Parliament last night.
KEIR Starmer’s Labour government says nearly 4 million households will see an annual income boost estimated to be worth £725 cash as a Bill to overhaul the welfare system completes the next stage of its passage through Parliament.
For the first time ever, the Universal Credit standard allowance will permanently rise above inflation, amounting to £725 by 2029/30 in cash terms for a single person aged 25 or over.
This is the highest permanent real terms increase to the main rate of out-of-work support since 1980, according to the IFS.
Reforms set out in the Universal Credit Bill will look to rebalance the core payment and health top up in Universal Credit (UC). This will address the fundamental imbalance in the system which creates perverse incentives that drive people into dependency.
The Bill, which will legislate to make these changes, today successfully cleared the House of Commons. It will now be introduced into the House of Lords to continue its passage through Parliament towards Royal Assent.
Alongside these changes, we have published significant new measures, giving people receiving health and disability benefits the right to try work without fear of reassessment.
The new Right to Try Guarantee enshrines this in law for the first time and includes disabled people and people with health conditions – such as those recovering from illness – who want to return to work now their health has improved.
Work and Pensions Secretary Liz Kendall said: Our reforms are built on the principle of fairness, fixing a system that for too long has left people trapped in a cycle of dependence.
“We are giving extra support to millions of households across the country, while offering disabled people the chance to work without fear of the repercussions if things don’t work out.
“These reforms will change the lives of people across the country, so they have a real chance for a better future.”
The Labour fovernment says as part of their ‘commitment to protect the most vulnerable and severely disabled’, 200,000 in the Severe Conditions Criteria group – individuals with the most severe, lifelong conditions who are unlikely to recover – will not be called for a UC reassessment.
All existing recipients of the UC health element and new customers with 12 months or less to live or who meet the Severe Conditions Criteria will also see their standard allowance combined with their UC health element rise at least in line with inflation every year from 2026/27 to 2029/30. This means they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them.
Starmer’s government says they are also ‘putting disabled people at the heart of a ministerial review of the Personal Independence Payment (PIP) assessment’ led by Disability Minister Stephen Timms and co-produced with disabled people, along with the organisations that represent them, experts, MPs and other stakeholders – making sure it is fair and fit for the future. However this review was only introduced following a substantial revolt by the party’s own backbench MPs on the introduction of the controversial legislation.
The government says they will be engaging widely over the summer to design the process for the review and consider how it can best be co-produced to ensure that expertise from a range of different perspectives is drawn upon.
They say the reforms are ‘underpinned by a major investment in employment support for sick and disabled people’ – worth £3.8 billion over the Parliament. Funding will be brought forward for tailored employment, health and skills support to help disabled people and those with health conditions get into work as part of our Pathways to Work guarantee.
This ‘investment’ will accelerate the pace of new investments in employment support programmes, building on and learning from successes such as the Connect to Work programme, which are already rolling out to provide disabled people and people with health conditions with one-to-one support at the point when they feel ready to work.
The Labour government says the welfare reforms build on the Get Britain Working White Paper that will overhaul Jobcentres, empower Mayors and local leaders to tackle inactivity, and deliver a Youth Guarantee so every young person is either earning or learning, as part of the Government’s ambition to deliver an 80% employment rate.
CRITICS – INCLUDING 47 LABOUR MPs – SEE THE LEGISLATION AS AN ATTACK ON THE POOREST PEOPLE IN OUR COUNTRY, HOWEVER …
Parkisnon’s UK SAID: “The government’s decision to cut Universal Credit costs is appalling. We believe that, despite the government’s claims, savings are being made by effectively making people with Parkinson’s ineligible for the higher rate health element.
Helen Barnard, director of policy, research and impact at Trussell, said: “We are deeply concerned about the cuts being made to Universal Credit health payments for disabled and ill people applying in the future.
“The scale of the remaining cuts in this ill-conceived bill will still be devastating and risks pushing more disabled people to food banks.
“Life costs more if you’re disabled. Cutting this part of our social security system will mean 9 in 10 disabled people newly claiming the Universal Credit health element will miss out on around £3,000 worth of support on average by 2029/30. It makes no sense to rip support away from people in the future, just because their health has worsened, they become disabled, or their income drops after an arbitrary date.
“By contrast, the uplift to the basic rate of Universal Credit that this bill will bring in is a very welcome and long overdue step towards ensuring our social security system covers the cost of essentials like food, bills and toiletries. Further clarity on how the government will work with disabled people, MPs and charities is also important.
“We applaud disabled people, MPs and community organisations like food banks for persistently raising their voices and ensuring many disabled people have been protected from deep financial losses during the progress of this bill.
“The UK government must now build on this to deliver a more compassionate, effective and fair social security system that, at the very least, protects disabled people from hunger and hardship.”
Work is underway to move the benefit awards of over 66,000 people to Scottish Adult Disability Living Allowance.
People getting DLA from the DWP don’t need to do anything as the transfer will happen automatically.
More at https://bit.ly/ScottishAdultDLA
New details on the government’s welfare reforms will be published today (Monday 30 June 2025) ahead of Second Reading of the Universal Credit (UC) and PIP Bill on Tuesday.
The terms of reference for the first ever comprehensive review of the PIP assessment in over a decade will be published today. The review – led by Minister for Social Security and Disability Sir Stephen Timms – will ensure the system is fair, supportive and reflects the realities of modern life.
It will be co-produced with disabled people, the organisations that represent them, and MPs with the core objective of delivering better experiences and better outcomes for disabled people and people with health conditions.
The review aims to respond to the changing picture of population health over the last decade including the rising prevalence of long-term health conditions and disability in the working-age population.
Monthly PIP awards have more than doubled since the pandemic, rising from 13,000 to 34,000 – a rate of around 1,000 new claims per day, or the population of Leicester every year. Much of this increase is driven by mental health conditions with awards for anxiety and depression having tripled from 2,500 per month in 2019 to 8,200 in 2023.
To better help those with mental ill health, the government has recruited more than 6,700 extra mental health workers since July while rolling out more access to occupational health services and developing digital resources, so employers better support their staff’s mental wellbeing.
Many people have also reported poor experiences with the assessment process. The current system often fails to reflect the real-world impact of disability on daily life and is no longer fit for purpose – making reform urgent and essential.
Alongside the review, draft regulations for the new Right to Try Guarantee will be laid in Parliament. This will, for the first time, enshrine in law the right for people receiving health and disability benefits to try work without fear of reassessment. This includes disabled people and people with health conditions – such as those recovering from illness – who want to return to work now their health has improved.
This responds directly to concerns raised by disabled people and people with health conditions – 37% of whom say they want to work but are held back by fear of losing their benefits according to a DWP survey.
Fixing the broken welfare system this government inherited is central to breaking down barriers to opportunity and driving up living standards – delivering on the government’s Plan for Change.
The government says reforms will ensure disabled people have the support they need to live independently, with dignity, and will unlock opportunities to get into work without facing the prospect of losing the help they need.
Work and Pensions Secretary Liz Kendall said: “We must build a welfare system that provides security for those who cannot work and the right support for those who can. Too often, disabled people feel trapped – worried that if they try to work, they could lose the support they depend on.
“That is why we are taking action to remove those barriers, support disabled people to live with dignity and independence, and open routes into employment for those who want to pursue it.
“This is about delivering a fairer, more compassionate system as part of our Plan for Change which supports people to thrive, whatever their circumstances.”
The Government will also set out details today of the changes they intend to make to the Bill as part of the government’s welfare reforms.
The Government says it has has listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the social security system.
That’s why ministers have confirmed that as part of the Bill:
Nearly 4 million households will receive an income boost with the main rate of UC set to increase above inflation every year for the next four years – estimated to be worth £725 by 2029/30 for a single household aged 25 or over. This is around £250 higher than an inflation only increases.
The Bill will also rebalance UC rates by reducing the health element for new UC claims to the equivalent of £50 per week from April 2026, fixing a system which incentivises people to define themselves as incapable of work by paying health element recipients more than double the standard amount.
These reforms will be also underpinned by a significant investment in employment support. Funding will be brought forward to accelerate tailored employment, health and skills support to help disabled people and those with health conditions get into work as part of our Pathways to Work guarantee.
£300 million will be brought forward over the next three years, increasing total employment support by £2.2 billion over four years – upholding our commitment to spend £1 billion per year by the end of the decade.
This investment will accelerate the pace of new planned investment in employment support programmes, building on and learning from successes such as the Connect to Work programme, which already provides disabled people and people with health conditions with one-to-one support at the point when they feel ready to work.
And for people whose health challenges make it difficult to find or stay in work, our initiative in partnership with the NHS, WorkWell, will offer personalised support to help individuals manage their health while preparing for or returning to employment. This will build on progress already made to get 384,000 people into work since this government entered office and will come alongside fundamental reforms to patient support as part of the landmark 10 Year Health Plan.
Health professionals will be on hand to connect people with services like physiotherapy, mental health support, and more. They will also be supported by a dedicated employment adviser who understands their specific health needs and guide them every step of the way.
For too long, meaningful reform to our welfare system has been ducked and delayed – stunting productivity, slowing down growth and ultimately holding British people and our country back. The government is taking decisive action and the difficult decisions needed to restore trust and faith in the system, providing opportunities for those who can work, and security for those who cannot.
Further information
More than 100 charities and civil society organisations have urged Scottish MPs to stand against social security cuts, uniting to tell Scottish MPs that it’s not too late to change course on controversial cuts.
They have written a joint letter to Scottish Secretary Ian Murray and copied it to all of Scotland’s MPs at Westminster.
They point to estimates that 400,000 people will be pushed into poverty if the changes to Personal Independence Payments and Universal Credit go ahead.
They warned that will mean destitution and misery for many sick and disabled people, as well as others in their households – including children and unpaid carers
Peter Kelly, chief executive of The Poverty Alliance said: “People are desperate for the UK Government to deliver a just and compassionate society – but these proposals will deliver the opposite.
“If enacted, these cuts will mean more disabled people living in poverty, relying on foodbanks, and pushed into destitution. That’s not the change people voted for at the last general election.”
In the letter they say: “This is a question of about the kind of society we want to be. Scotland is a country that believes in justice and compassion and people want our governments to make decisions which align with those values.
“We urge Ministers to drop these proposals. We urge Scottish MPs to vote against these cuts, sending a strong, positive message to disabled people and carers in Scotland that this Government will build a country free from poverty, not one that forces people into deeper poverty and destitution.”
MPs are expected to get their first chance to vote on the cuts in the Commons on 1 July. The Government is facing defeat after dozens of Labour MPs signalled their opposition.
Fiona Collie of Carers Scotland said: “We need a government that will reduce the poverty that unpaid carers face. If these cuts go ahead, even more of them will be pushed into crisis – leaving people struggling to afford food, heating, and other essentials.
“We estimate that around 150,000 unpaid carers across the UK stands to lose carers’ benefits as a direct result of these changes. That’s completely wrong – and any MP who votes to inflict that kind of deliberate harm on people in their constituency will have to justify themselves to electors.”
Tressa Burke of the Glasgow Disability Alliance said: “It is shameful to try to balance the nation’s books on the backs of disabled people. We have around 6,000 members who have already suffered the worst impacts of the cost-of-living crisis, and more than a decade of austerity and social security cuts.
“These plans will cause untold harm to many disabled people and push them into destitution. It will undermine their human rights and leave them facing even greater inequality and discrimination. If MPs in Scotland support these heartless cuts, it will be a bleak day indeed. They will absolutely not get people into work, and will act as a reason to fall out of work too, where PIP has been topping up low-paid work.’
In a survey last year, 71% of Glasgow Disability Alliance members said they didn’t have enough money to manage the cost of their needs, 68% couldn’t afford utilities, and 58% couldn’t manage the costs of food and essential groceries.
A substantial number of Labour backbenchers remain resolute and refuse to back the watered-down Bill.
RACHAEL Maskell MP said: “I have spent my life standing up for sick and disabled people, professionally and personally, and while progress is welcome, to introduce a system which leaves sick and disabled people in the future in poverty, those with fluctuating conditions, in uncertainty, including those with MS or a cancer relapse, no security, is unacceptable.
“Taking someone’s independence, does not make them better, more able to work or keep people in work. It creates poverty, dependency and places more pressure on social care and the NHS.
“Most chilling, according to Refuge, 29% of domestic violence survivors are disabled people and are far less likely to flee their home if they lose this crucial support.
“Work by the Women’s Budget Group demonstrates that this policy is highly gendered, impacting women significantly.
“Disabled people have not battled all their lives to then pull the ladder up behind them.
“I cannot support the ableist perception of sick and disabled people, where they have been given no agency in these proposals.
“Instead I draw on the substantial evidence, the voices of those impacted and my conscience which determines that I cannot cross by on the other side and have no choice but to vote against the UC & PIP Bill.”
More than 75,000 people have signed Richard Burgon MPs petition on Change:
CITIZENS Advice Scotland says the Westminster Government’s proposed welfare reforms will be devastating for sick and disabled people in Scotland.
Emma Jackson, CAS head of social justice, says: ““The proposed welfare reforms will be devastating for sick and disabled people across the UK.
“However, Citizens Advice Scotland is deeply concerned that the UK Government is not sufficiently considering the unique impact of these proposed reforms on people in Scotland.
“Around two thirds of the people accessing support from the Scottish CAB network have a disability or health condition, and our evidence shows that people already cannot afford the essentials. These cuts will force more people into debt, destitution, and despair.
“From what we understand, alongside reducing incomes, there is a high risk that welfare reforms could make the claims process even more complicated for people in Scotland, increasing the likelihood that they will not access their full support entitlements.
“It is crucial that the UK Government halts and reconsiders these reforms. Meaningful consultation is required with the Scottish Government, disabled people and the third sector in Scotland.
“We strongly urge MPs to vote against the proposed welfare reforms because they will expose sick and disabled people in Scotland to significant harm.”
KEIR Starmer’s Labour government has performed another U-Turn and has watered down their proposals in an attempt to stave off a humiliating defeat in a Commons vote on Tuesday.
They believe they will be able to convince enough Labour MPS to support the controversial Bill and remain hard at work persuading rebels to come into line before the crucial vote.
The Tories have ‘helpfully’ offered to support the Labour government’s welfare bill, albeit with conditions attached.
A substantial number of Labour MPs remain unconvinced, however, and are determined to reject legislation they see as punishing ill and disabled people:
Left wing MP Richard Burgon said: “It is significant that Disability Labour – the Labour Party’s official disabled person’s affiliate organisation – has issued a statement that the government’s concessions are insufficient and is calling on all MPs to vote against the benefits Bill on Tuesday:
Helen Barnard, director of policy at Trussell, said: “The significant concessions made by the UK government are welcome, but proposals still present a bleak future for future claimants and still risk placing the government’s commitments to end the need for emergency food and tackle poverty in serious jeopardy.
“Being disabled isn’t a choice. Our fears remain the same, and key MP concerns still remain to be addressed. As it stands, we still have a pledge to review the PIP assessment that has no clear bearing on these changes.
“MPs will still be voting without a full picture of the impact on their constituents, particularly of the proposed ‘4 point rule’ for PIP claims – which are expected to impact nearly half a million people, and force more disabled people to the doors of food banks.
“We urge MPs who stood against the bill to continue to do so, and protect the people these changes will affect in the near future.”
Against a backdrop of unprecedented cuts to social security for disabled people and on the day of the first reading of the welfare reform bill, representatives of community food organisations from across UK called for urgent steps towards an Essentials Guarantee to ensure Universal Credit is fit for purpose:
For the first time ever, more than 700 representatives – including people experiencing severe hardship, volunteers at local food banks and representatives from community food organisations – stood shoulder-to-shoulder to create an historic lobby at Westminster on Wednesday (18th June) as part of the Guarantee our Essentials campaign.
Among the prominent figures at the event was comedian, TV personality and Trussell supporter Nish Kumar who joined calls for a stronger social security system that ensures everyone can afford the essentials, like food.
Right now, more than 9.3 million people – including more than three million children – are facing hunger and hardship across the UK. In response, leading anti-poverty organisations including Trussell, the Joseph Rowntree Foundation, Independent Food Aid Network, Feeding Britain, Salvation Army and Your Local Pantry united in London to urge the UK government to take immediate action.
People from across the four nations of the UK came to meet their constituent MP, speak out against the levels of severe hardship they are seeing in their local area, and ask policymakers to play their part in delivering urgent and meaningful change to our social security system.
Representatives are calling for steps towards an Essentials Guarantee which would ensure Universal Credit is fit for purpose, helping to prevent people from having to use a food bank.
This means moving closer to a guarantee that the basic rate of Universal Credit provides enough to ensure people are at least able to afford the essentials we all need to get by, such as food and bills.
Alongside the lobby, Trussell organised a panel discussion with people experiencing severe hardship and a session hosted by Nish Kumar.
The event took place on the same day the UK government published its draft welfare reform bill, and millions of the UK public nervously wait to hear how MPs will vote on £7 billion worth of cruel cuts to disabled people’s social security payments. These cuts will push 440,000 more people in disabled households into severe hardship, according to Trussell research.
Shockingly, three in four people who come to food banks in the Trussell community are disabled or live with someone who is, as disability payments for too many people already fall short of covering the essentials, like food and heating.
Too many people are falling behind on bills, are becoming trapped in debt, and having to live in cold, damp homes.
Trussell says this is not right, and the majority of the UK public agrees that social security payments for disabled people should be enough to cover at least the essentials.
Representatives at the lobby told more than 150 MPs these levels of severe hardship can and must change for the better. They urged them to play their part and join Trussell, the Joseph Rowntree Foundation (JRF), and more than 100 charities, in calling on the UK government to create an Essentials Guarantee.
Steps towards achieving this include implementing a ‘full boost’ to Universal Credit, raising it by £5 a week after inflation from April 2026, not April 2029, as planned.
They also called for their MP to back bringing in an initial low-level protected minimum floor in Universal Credit to limit all deductions from social security payments including the benefit cap, to make the government’s new Fair Repayment Rate truly effective.
Campaigners reiterated that whatever happens, we need Universal Credit to be there for all of us when we need it and urged that their MPs cannot ignore the shockingly high levels of severe hardship in our communities. Crucially, they highlighted the opportunity to create some positive changes, such as the boost, to help people as much as possible.
Emma Revie, chief executive at Trussell, said: “With more than 700 of us travelling to Westminster, we couldn’t send a more powerful and clear message to our MPs and to the UK government.
“We will not stand by while 9.3 million of us are facing hunger and hardship. People who have experienced severe hardship, people who work in food banks and from community organisations, as well as charity partners, have gathered from all over the UK, to call for a stronger social security system.
“The moment couldn’t be more crucial. Our event comes as we wait to hear whether MPs are going to vote to cut disabled people’s social security by £7 billion.
“It’s time for the UK government to act , and take steps towards creating an Essentials Guarantee to ensure Universal Credit is fit for purpose and protects everyone that needs it.”
Nish Kumar, comedian and Trussell supporter, said: “It’s been incredible to join so many people coming together with one voice to speak out against the rising tide of hunger and hardship in the UK.
“This collective action shows that change is possible when we stand together and call for a future where everyone can afford life’s essentials.
“I’ve seen the incredible work that food banks do to support people facing hardship, but charities cannot and should not bear the brunt of an inadequate social security system that should be there to support us. We live in one of the wealthiest countries in the world, yet millions of people are struggling to make ends meet.
“We know the most important solution to ending the need for food banks – it’s about ensuring people have enough money in their pockets to put food on the table. This is a political choice, and our government has the power to end it.”
Jacob Forman, director at Epping Forest Foodbank, said: “On the same day the UK government formally introduced a new bill in Parliament proposing significant cuts to support for disabled people, I was proud to stand alongside food banks in the Trussell community to demand better. Better for everyone who has been forced to use a food bank, and better for everyone who may be forced to in the future.
We know the UK public supports a future without food banks, and it’s one of the promises that this government was elected on.
“We have not asked our MPs for the impossible. Instead, we have shared our vast experiences to highlight the actions that can genuinely change the life circumstances of the people we see every day for the better.
“As politicians sit on their benches, I hope our words resonate with them and encourage them push for a stronger social security system that ensures everyone can afford the essentials.”
Jen Coleman, from Black Country Foodbank, a member of the Independent Food Aid Network, said: “Across the whole of the UK, a vast network of charitable food aid providers are united in their calls for the same fundamental changes to our broken social security system.
“Above all, everyone should be able to afford the essentials and a labyrinth of food banks and food pantries shouldn’t be needed to pick up the pieces.”
On 3rd July, MPs will vote on a Bill that could push 440,000 disabled people into severe hardship. There’s still time to contact your MP and urge them to vote against these devastating cuts.
More than one million households struggling with debt will get to keep an average £420 more of their benefits each year, under a change to Universal Credit coming into force today [Wednesday 30 April 2025].
The Fair Repayment Rate places a limit on how much people in debt can have taken off their benefits to pay what they owe. The maximum amount that can be taken from someone’s Universal Credit standard allowance payment to repay debt has been 25% – but from today this is reduced to 15%.
This will mean an average £420 extra a year for 1.2 million of the poorest households, including 700,000 households with children, while helping people to pay down their debts in a sustainable way.
It forms part of the Government’s Plan for Change to put more money into people’s pockets and boost living standards and marks the Government’s first step in a wider review of Universal Credit to ensure it is still doing its job.
The Fair Repayment Rate was introduced by the Chancellor at the Autumn Budget, as part of broader efforts to raise living standards, combat poverty, and tackle the cost-of-living crisis.
Chancellor of the Exchequer Rachel Reeves said: “As announced at the budget, from today, 1.2 million households will keep more of their Universal Credit and will be on average £420 better off a year.
This is our plan for change delivering, easing the cost of living and putting more money into the pockets of working people.
“With as many as 2.8 million households seeing deductions made to their Universal Credit award to pay off debt each month, the new rate is designed to ensure money is repaid where it is owed, and people can still cover their day-to-day needs.”
Work and Pensions Secretary Liz Kendall said: “As part of our Plan for Change, we are taking decisive action to ensure working people keep more of the benefits they’re entitled to – which will boost financial security and improve living standards up and down the country.
“We’re delivering meaningful change to ensure everyone has a fair chance, the support they need, and real hope for the future.”
The Fair Repayment Rate is one of a number of bold measures the Government is taking as part of its Plan for Change to kickstart growth and spread prosperity across the country.
Viewing work as a key route out of poverty, the Government set out the Get Britain Working White Paper – aiming to achieve its target 80% employment rate by overhauling Jobcentres, introducing a new jobs and careers service, and launching a youth guarantee so every young person is earning or learning.
This comes on top of increasing the National Minimum and National Living Wage to ensure being in work pays.
To support those in greatest need, the Household Support Fund has been extended another year – backed by £742 million, so local councils can continue to support low-income households with energy bills, food and essential items, while also funding long-term solutions, like home insulation, to help people at risk of falling into poverty.
The Government is also working to tackle child poverty, rolling out free breakfast clubs in all primary schools in England as the dedicated ministerial taskforce builds its ambitious strategy to ensure every child has the best start in life.
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